CHICAGO–More than 10,000 people have signed up for a special high-yield savings account with Alliant Credit Union, in a program that was proposed by the financial advisor and author Suze Orman and rejected by other CUs, according to a new report.
In a partnership Orman, Alliant Credit Union has been offering a special high-yield savings account that pays out a $100 bonus to members who consistently save money for a year.
To earn the $100 bonus, account-holders must deposit at least $100 into the account each month for 12 consecutive months, and have at least $1,200 in the account after 12 months, according to Alliant. Members can withdraw money during that time without sacrificing the end-of-year bonus, a feature Orman told NextAdvisor.com, she insisted upon. Members just have to maintain a $100 minimum balance and reach a total of $1,200 at the end of one year.
The account also advertises $0 monthly fees and a nationwide network of free ATMs. As of March 22, Alliant was offering a .55% APY.
An Unusual Partnership
According to NextAdvisor.com, the unusual partnership traces back to late last year, when the CEO of Alliant approached Orman about sponsoring her podcast, “Women & Money.” Orman took the opportunity to counter with a proposal of her own, the report stated.
“They offered to sponsor the podcast. I said great, that’s fine, but I don’t really care about that. I want to help people save money,” Orman told Time.com
In the end, Orman got both: ads on her podcasts plus “The Ultimate Opportunity Savings Account,” the co-branded initiative with Alliant, the report added.
Not Being Paid
Orman is not getting paid to promote the new savings initiative, Dennis Devine, CEO of Alliant Credit Union, told Time.com. He added that the podcast spending was modest. Orman was also not paid for the very active role she played in developing the campaign, with Devine saying it “was her creative career.”
NextAdvisor.com reported the deal took a few weeks to come together.
“At first, honest to God, he said no,” Orman told NextAdvisor.com. Devine told NextAdvisor.com there were costs to consider, especially if the idea took off. Because credit unions are cooperatively owned, “we wanted to make sure we were being responsible stewards,” he told the publication.
Orman said she wasn’t surprised, as other credit unions had turned down her idea, NextAdvisor.com reported.
“But she made her case again, and after some back and forth they had an agreement that Devine says is in keeping with Alliant’s mission to improve the financial well-being of its members,” the report stated.
10,000 Sign Up
According to Allison Videtti, director of brand management and marketing with Alliant, in two months approximately 10,000 people have signed up for the account, exceeding expectations.
Orman told NextAdvisor.com her goal is to make saving as rewarding as possible.
“Let’s just simply pay people to save,” she was quoted as saying, noting Alliant savers who get the bonus will earn the equivalent of a 16% APY. “All you do is put in $100 a month for 12 consecutive months. Fabulous,” she was quoted as saving.